Dear Sir,

You are right Sir, a legal notice may be issued and matter will be settled.

GST exemption limit enhanced to Rs 7,500 for monthly charges paid to a housing society

• Monthly maintenance charges of housing societies till Ra 7,500 have been exempted from GST
• Earlier GST was applicable if the monthly bill was more than Rs. 5,000 per month

MUMBAI: Monthly maintenance charges, which one pays to co-operative housing society (CHS) or to be specific to its resident welfare association (RWA), will not attract Goods and Service Tax (GST), provided such charges are Rs. 7,500 or less per month. ‎The GST Council in its meeting held in January has enhanced the threshold applicability limit. Earlier GST was applicable if the monthly bill was more than Rs. 5,000 per month. The new limits apply from January 25.

‎There is no change in the GST registration requirement for CHS. It has to register if it’s annual turnover is Rs. 20 lakh or more.

An official release by the Ministry of Finance, issued on Wednesday, February 7, clarifies that: ‎RWAs shall be required to pay GST on monthly subscription charged from its members if such subscription is more than Rs.7,500 per month per member and the annual turnover of RWA by way of supplying of services and goods is also Rs. 20 lakhs or more.‎ Thus smaller CHS with a lower turnover do not have to register under GST and comply with its various obligations.‎

Maintenance charges are collected by a CHS for various purposes like providing security, lift maintenance, maintenance of common areas like a lobby or a garden. In tony luxury housing societies which have facilities like a club house, gym or swimming pool the monthly maintenance charges are steep, running up to more than a lakh. These charges payable by members are typically a reimbursement for expenses incurred by the CHS.

 The CBEC in an FAQ has earlier clarified that sinking fund, repairs & maintenance fund, car parking charges, non-occupancy charges, or simple interest for late payment of the dues of the CHS would be covered by GST as these are collected by the CHS for supply of services meant for its members.

The official release adds that under GST the tax burden on RWAs will be lower as they would now be entitled to Input Tax Credit (ITC) in respect of taxes paid by them on capital goods (generators, water pumps, lawn furniture etc), goods (taps, pipes, other sanitary/hardware fillings etc) and input services such as repair and maintenance services.

Dear Client,

Electricity, water are essential services and cannot be disconnected for non payment of bills 

2) if maintenance bill is less than Rs 7500 no GST. Is to be charged 

GST is applicable on maintenance charges it's coming under Service tax. Monthly maintenance charges of housing societies upto Rs. 7500 have been exempted form GST.

you can file Complaints before Sub registrar regarding gst charging illegally by Association. 

Your society should not charge any gst up to 7500/-. Its illegal as per the govt notification.  You can complaint to dy registrar as well as consumer court for the same

Hello, 

They can not levy GST if the maintenance is less than 7500. 

You may  go ahead and file a complaint for charging GST illegally  

Also, you may send them a legal notice first and thereafter file a complaint against them. 

regards 

If monthly maintenance is below 7500 then GST is not applicable you can file a consumer complaint against society for illegally.collecting GST and can seek the paid amount back.

Monthly maintenance charges, which one pays to co-operative housing society (CHS) or to be specific to its resident welfare association (RWA), will not attract Goods and Service Tax (GST), provided such charges are Rs. 7,500 or less per month. ... It has to register if it's annual turnover is Rs. 20 lakh or more.

The GST Council in its meeting held in January has enhanced the threshold applicability limit.  .. 

Under GST the tax burden on RWAs will be lower as they would now be entitled to Input Tax Credit (ITC) in respect of taxes paid by them on capital goods (generators, water pumps, lawn furniture etc), goods (taps, pipes, other sanitary/hardware fillings etc) and input services such as repair and maintenance services. 

The association cannot disconnect the basic amenities or supply of essential services for any reason, you can obtain an order of injunction  against the association before hand if they have already issued a letter on that count.

It is the problem of half knowledge people who act on their own understanding of the law involved in this.

Dear

The association cannot charge GST for monthly maintenance amount of upto Rs 7500.

You can send them a legal notice for that unfair charging of GST. 

Association cannot disconnect the essential services like water or electricity